Tombstone Exploration Corporation Inc, an Arizona based metals and minerals exploration and mining company, knows the metals mining and production industry, leveraging their size to grow and profit from it.
The precious and base metals industry is huge, generating over one hundred billion dollars annually in metal production. It is made up of two kinds of players, the major producers (such as Barrick, Newmont, and Phelps Dodge) and various junior exploration and mining companies such as Tombstone. Large players can easily expand their operations through joint ventures and consolidations, as well as through the acquisition of well-positioned junior players. The small exploration and mining companies focus on locating new finds, proving up a portion of reserves through geological studies, analysis and drilling, and then initiating small scale operations. When results are positive, the large producers will typically come in to initiate large scale operations.
Between the large producers and the final consumer are the refiners/distributors, such as Englehart and Johnson Maffey. The majority of precious metals produced are utilized by the industrial and electronics industry, the automotive industry, the jewelry industry, and the investment community.
Demand currently exceeds supply, and all product produced, especially precious metals, is readily absorbed by the market, with profitability determined by the cost of production. The highest potential return to investors invariably comes from junior companies, with share price remaining low until a successful project is proven.
As metal prices have risen, new areas for exploration have opened up, and there has also been a resurgence of interest in exploring the mainland U.S., where it is politically stable and sites are fairly easy to access throughout the year. But most junior companies only target one or two categories of metals, limiting their chances for a successful buyout. Today, the keys to success for junior level companies are:
Property holdings and potential
Location
Metal diversity
Cost of development/operation
Tombstone has worked hard to position itself accordingly by focusing on the most promising locations within the mainland U.S., minimizing development costs, and also by targeting diverse metals.
For more information, see the company’s website at www.tombstonemining.com.
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